Category: Exotic Cars

When it comes time to buy a car, new or used, the dealership you buy from can determine what kind of experience you will have. The question people are often faced with when they’ve decided the kind of car they want is: Do I buy from a franchise store or an independent dealership? There are several differences between the two, pros and cons for each, and some could argue that they would never deviate from buying at a franchise store, no questions asked. Now, we may be a little biased, but when it comes to buying a used vehicle, especially in the exotic world, an independent dealer is the way to go.

Franchise dealerships tend to have an advantage because potential customers have heard of their franchise name, and either associate it with personal previous experience, or the experience of others. Or, they assume because they have ads on the radio or on TV, it must be better. They assume that if a used car is from a name-brand retailer that’s affiliated with a manufacturer, that the quality of the cars is better, that they are in better condition. I often apply this sort of thinking when grocery shopping–I’d rather have the name-brand cereal than the store’s version of it. Why? I’m just more comfortable with it. Have I ever tried the other kind? No. Any desire to even explore that as a less expensive option that is essentially the exact same thing? No. When thinking about it this way, I can wrap my head around why people lean toward what they’re comfortable with. It makes total sense. Why would I buy my first pre-owned Ferrari 360 from a dealership I’ve never heard of instead of going directly to a franchised Ferrari store?

What’s great about an independent dealership, especially in the exotic market, is we know each and every car backwards and forwards–we know its history, where it’s lived, oftentimes we know the previous owner personally, or at the very least, know how the car was maintained and where. We say it all the time: every car has a story to tell, and our job is to tell its story and find the person who wants to be a part of the car’s journey.

As an owner of an independent dealership, I am passionate about the product we sell and the customers we sell to. Whether it’s a novice Ferrari-lover who wants a 2015 Ferrari F12 Berlinetta, or a veteran exotic-enthusiast coming to buy the iconic 1987 Ferrari Testarossa, it is vital that we provide a sales experience unlike any other, one that is the antithesis of what people believe the car business is all about. It is our job to answer all of the customer’s questions, tell them everything they need or want to know about the vehicle they are considering, making them completely comfortable and happy. At Merlin Auto Group, we are able to offer that kind of experience.

Why do people care so much about the number of owners that a car has had?

It’s an interesting question because in the exotic world, it is not uncommon for people to buy and sell their exotic cars regularly. That Ferrari F430 Spider that was the must have in August might just not be quite right for Fall.  Many of our clients trade often, buy a car for six months, keep it, get tired of it, and get rid of it. As a result, there’s nothing to say that there is anything wrong with that car. However, the car that’s had three or four owners in its life–is there reason to explore? Yes, absolutely. But is there reason to stay away from that car entirely? Does multiple owners mean the car is in bad shape? No.

Here’s why it can be scary, or here is the risk involved: We all know that maintaining a Ferrari or any exotic is different than maintaining your Honda Accord. What often happens in these instances is people tend to trade their cars when they find out their car needs something in service, or is close to needing something done service-wise. No different than when people trade their car right before its about to run out of warranty because they do not want to be the ones hit with the big expense. Take a Ferrari 360 that has ten owners, for example. That car could have gone through the ownership of ten different people, none of whom did any kind of preventative maintenance on that car, other than oil changes, brakes, etc., and every one of whom kept the car for a short period of time and got rid of it because they did not want to do whatever major service was necessary. In an instance like that, the car is probably going to be cheap on the market; however, it has ten (or however many) years  worth of deferred maintenance, which will then cost the new owner a fortune to get the car to a point where they can then drive it, enjoy it, and keep it. In our experience, this seems to be the biggest obstacle, or thing to observe when talking about the number of owners a car has. If a car has five owners with extensive service records from each owner, you look at the car and determine that everything is up to date, the car doesn’t have any deferred maintenance, and the pedigree is fantastic, who cares if it’s had five owners?

We get really excited about one-owner cars because you have a better understanding of where the car has been, who has maintained it, the level to which it has been maintained–that’s where the value comes. The fear comes with the multiple-owner cars if you dont have the information as to how the car has been maintained, and deferred maintenance on an exotic car can be more costly than the actual purchase price of the car.

The used car market is all about supply and demand–it is something we say over and over again about used cars in general, including the collectible car market. So, how will the recent hurricanes in Texas and in Florida affect the used car market? Two huge metropolitan markets have been severely devastated by the hurricanes, resulting in the loss of homes, possessions, and hundreds of thousands of automobiles. As it pertains to cars, the demand for new and used vehicles will sky-rocket, while the supply of used cars will go down. The new car manufacturers offer a plethora of cars, but Texas and Florida are incredibly large used car markets–not only cars that people own, but dealership cars, as well as auctions that have thousands of cars on the ground, are going to be devastated, and potentially have total losses of vehicles. Inevitably what happens in situations like this is the supply goes down while the demand goes up, as people are going to need to replace their cars or means of transportation  By the end of the year, and possibly even before, we predict the prices of used cars is going to rise exponentially. There is also going to be additional expertise necessary to make sure you don’t end up with a car that may not have been a total loss, but still has had damage from the hurricane, that is merely being passed off because the demand is going to be so high. So, in thinking about supply and demand as far as regular cars go, the pre-owned market is going to surge, just because of the size of the two markets that are going to be predominantly affected by the hurricanes.

Now, when you think about how the collectible and exotic markets are going to be affected, it’s interesting because both in Texas and in Florida even more so, there is an enormous concentration of exotics–from collectible old exotics like a Ferrari 308, to newer exotics like the Ferrari 458, and everything in between. There is also a concentration of wealth in both areas, and as a result they house extensive car collections for private individuals, as well as exotic car dealerships. When talking about units in operation in the business (i.e. how many cars are on the street), there are a ton of exotic registrations in Texas and in Florida. While the exotic and collectible car market already has a short supply by nature, if these cars are destroyed or are total losses, the supply will obviously go down even more, causing the demand to shoot through the roof, not to mention the value of the cars themselves.

There is, of course, no way to tell for sure what will happen to the car market as a result of the hurricanes. What we know for sure is there is going to be a disproportionate number of cars destroyed to ones that are available. So, by applying a simple economic theory to the used car market, exotic and otherwise, we can predict that used car prices will rise, as the demand for them increases and the supply decreases.

Are aftermarket modifications a good idea or a bad idea? As a company that specializes in pre-owned cars, this is a question that comes up a lot. We take in customer trades all the time and help them get into the car of their dreams, whether its a 1987 Ferrari Testarossa or a later model Ferrari California, our mission is to do whatever we can to make the car-buying (or car-selling) experience enjoyable and exciting.

That being said, a lot goes into this process. Evaluating a trade can sometimes be a little tricky, as the car’s value is under scrutiny because of aftermarket modifications that the owner added while in their care. While cognitively it would make sense that money you added to the car in modifications would then be added to the selling price, that is not always the case, unfortunately. There are two reasons for this:

1.  Not everyone wants the car modified exactly like someone did. If they are looking for a particular year, make and model, more often than not, they are going to opt for the one that doesnt have a ton of add-ons, one that they can modify themselves or have in its all-original condition.

2. There is no way to tell how these options were installed or who installed them. Records of installation can be provided, of course, but that doesnt always settle the stomach of the person out-of-state who is about to spend a ton of money on your car.

So, in short, we are not saying there is anything wrong with adding aftermarket modifications to your car. We are just pointing out that as an investment, they are not necessarily a wise investment choice, because at the end of the day, the car was tailored to your wants and needs, and not the next owners.

This brings us to the next question that comes up frequently, which is, when it comes to fixing and maintaining your car, are OEM parts or aftermarket parts better?

An aftermarket part is one that was not sourced or made by the manufacturer. In our experience, aftermarket parts tend to get a bad rap, probably due to lack of knowledge or understanding, and are often thought of as cheap products that will cause more damage to your car than good. We have found that there are plenty of well-made aftermarket parts and products available if you take the time to look. The key is to be familiar with what you’re looking for, and if you’re not, find a mechanic you trust to help guide you. Some advantages to aftermarket parts are they tend to be less expensive, there is more variety and better availability, and they can often be of equal or greater quality than OEM parts (this is due to aftermarket companies reverse-engineering parts to work the weaknesses out). Something to look out for with aftermarket products is the quality first and foremost. A disadvantage to non-OEM parts is that there is an overwhelming selection, so stick with aftermarket brands that you are familiar with or that come recommended by someone you trust to ensure the quality is good.

As far as OEM parts go, there are definitely some advantages/disadvantages to be aware of. The great thing about OEM parts is that they are made by your vehicle’s manufacturer, so they match what your car had originally. This takes away the stress of finding a good part for your car and assessing its quality, since all you have to do is call the dealership and have them handle it. This does have its drawbacks, however, which are that they tend to be more expensive (about 60% more expensive), although dealers are making adjustments to compete with independent shops. Another thing to watch out for is the quality. The idea that aftermarket parts are cheap and inferior is not always the case, so when buying an OEM part you may be paying extra just for the name. The manufacturer can make mistakes in part production, evidence of this is the number of vehicles called back due to defects.

Important: When it comes to collision repair, we always advise sticking to OEM parts, since aftermarket body parts may not fit properly, and can affect your cars value when it comes to resale if they are aftermarket.

So, in short, the consensus seems to be that while aftermarket modifications do not add value to your car in terms of resale, it should not deter you of adding what you want to your car. Just something to be aware of when determining the cars price when you are reselling. As far as aftermarket parts go, as with anything else, do your research, and you will find the right fit for you and your car for the right price.

The Rolls-Royce brand is one synonymous with perfection, ever since it first came into existence in 1904. These cars have been identified with luxury, power and success, not only because they are of the most expensive cars in the world, but because of what they represent. A brand founded upon the pursuit of perfection, Rolls-Royce’s sterling reputation has withstood the test of time, and continues to be one of, if not the most sought after brand in the world.

One would have to be pretty confident in their ability to achieve perfection to take on the responsibility of continuing the legacy Rolls-Royce left behind to the same caliber. Over the course of its existence, Rolls-Royce has undergone quite a few ownership changes. In 1904, Henry Royce and William Rolls founded Rolls-Royce Limited, and it was then sold to Volkswagen where it was renamed Rolls-Royce Motors.  Ultimately they sold it to BMW in 1998, establishing Rolls-Royce Motor Cars Limited. It has remained a BMW subsidiary ever since.

A common question, or concern is: Could the Rolls-Royce brand be diminished by being owned by BMW? Is this a good thing or a bad thing?

The issue with luxury cars is that sometimes, they compromise function for beauty, paying more attention to the elegance of the vehicle rather than its functionality. The manufacturers go out of their way to make the car so exquisite and spectacular that they sometimes sacrifice usability. The benefit of the Rolls-Royce/BMW merger is that you get all of the luxury and excellence of Rolls-Royce, as well as the benefit of BMW’s drivability, forward-thinking, and service-ability, making the car far more practical and resilient. In addition, because of efficiency of BMW technology, they are able to produce more cars, and it has opened up the market to other people who will buy them. From a driver’s perspective, one of the best things is BMW put its 4-year bumper to bumper 50k warranty on all Rolls-Royce cars, making the service aspect less daunting for the buyer.

Exclusivity of the brand has proven to be crucial to its success, so what does more production mean for sales and collectability?

This will probably hurt collectibility on current cars, but makes pre-BMW-ownership cars even more collectable. As for sales, in 2014 Rolls-Royce Motor Cars Limited announced the highest annual sales in its history, selling 4,063 cars, a 12% increase from 2013. They recently announced their second highest every annual sales result in 2016, selling a total of 4,011 cars worldwide.

Torsten Muller-Otvos, chief executive of Rolls-Royce, said: The result confirms that our strategy of balanced, sustainable and profitable growth is delivering and that Rolls-Royce remains the worlds leading luxury goods brand.

So, could some of the integrity of the brand be lost with ownership change? Possibly, but we have yet to be convinced of that.

A Collector, by definition, is a person who collects things of a specified type, professionally as a hobby. A Collection, by definition, is a group of objects or an amount of material accumulated in one location, especially for some purpose or because of some process. When it comes to a collection, what usually comes to mind are stamps, coins, porcelain dolls, crystal figurines, things of that nature. You know, small stuff. Rarely do we think immediately of automobiles as a collector’s item–almost never do we dream of a garage filled with rows and rows of exotic luxury vehicles and classic cars, all lined up one after the other. Or do we?

More and more, car collections have become a popular hobby among the elite. Some of us can’t even imagine owning one of these magnificent cars, let alone collecting them, and as a hobby no less. There are a rare few, however, who have that very privilege and desire. It requires more than just a lot of money to become a car collector. It requires passion, patience, love and determination. What originated in the late 1800’s as a means of practical transportation, the development of the automobile has transcended the hopes and plans of anyone responsible for its conception. Cars are not just transportation anymore; they are history, they are works of art, they are dreams.

A question that may come to mind is, why do these people spend so much time and money on something as trivial as a hobby? The truth is, for many who collect automobiles, the value of their collections rarely has anything to do with money. It’s deeper than that, it’s emotional. Furthermore, these collections are often not for sale. Some collect to preserve the past. Some collect for the thrill, the hunt, the quest. Some collect to prove their wealth. Some simply collect for fun, truly as a hobby–cars have always been a passion of theirs and owning a lot of them brings about pure joy and excitement. Whatever the reason, cars from all over the world, all makes and models, have been preserved, loved and appreciated, from the time the automobile was first developed to now.

We took a moment to pay homage to some of the most famous garages out there.

Jay Leno
“I was buying the story more than I bought the actual car.”
After his 20 year run as late night talk show host, Jay Leno now invests his time in his NBC-produced series, “Jay Leno’s Garage.” Leno owns approximately 286 vehicles (169 cars, 117 motorcycles).

Jerry Seinfeld
“For me, one of the most exciting things about a car is I don’t know what’s around the next bend, and this car will help me find it…You dont feel separated from the feeling that you had as a child when you got a toy that you loved, you know, that was a simple connection.”
One of the top-grossing comedians ever, Seinfeld is primarily a Porsche collector who continues to show his love for classic cars on his hit series, “Comedians In Cars Getting Coffee.”
Ralph Lauren
“I don’t ever think of myself as a collector, in my mind they are like parts of me. Cars are fun and toys and they all offer you a different experience…cars have always inspired me…I believe in cars in being works of art…it’s technology, it’s mechanics, it’s details, and to me that’s a special kind of art.”
The fashion mogul’s collection is now more than 70 cars, estimated to be worth at least $300 million, which he began shortly after his empire took off.

Buying a car is stressful, or rather, it can be a stressful process. There’s a lot to consider when buying a car. Year, make, model, et cetera. Buying a used car unveils a whole ‘nother level of stress because not only do you have the actual car to consider, you now have to take into account the car’s history. Where has the car lived? How many miles are on it? How many owners has it had? What service has been done to the car? Are service records available? And then, of course, has it been in any accidents?

More often than not, the first move people make is checking out the car’s Carfax report. No one can deny the relief upon seeing that the car has no accident history reported. The operative word being, “reported.” One may wonder, How reliable are these reports? Maybe you don’t wonder at all, and swear by what you see in front of you.

We asked Adam Merlin, the owner at Merlin Auto Group, his take on Carfax reports and what he looks for. “Carfax is a resource and a tool that gives information, but like anything else, it needs to be verified. The car needs to be inspected by somebody who knows what they are looking for.”

It is always good to consider the information offered by these reports, but what is reported is not always accurate. What do we mean by that? Well, the reports can sometimes be incorrect in terms of the severity of a certain accident–in other words, the extent of the accident can sometimes be inaccurately reported. “Buying a car is a big deal, so people want to make sure they’re getting exactly what they’re paying for. Often what we see is people rely too heavily on the Carfax, instead of investigating further and looking at the car as a separate entity. We believe people need to let the car stand on its own two feet (or four wheels…you get the idea). It could turn out to be a fantastic car that gets overlooked because it was either incorrectly reported and unjustifiably passed over.”

What’s the most important thing Adam looks for in any vehicle’s history report? “Any valuable information as far as the story of the car goes. That usually consists of service history, where the car lived for most of its life (climates/areas of the country), so I can positively or negatively vet the car.” The Carfax, along with any other report on a car’s history is valuable and, of course, essential to the car-buying process. It is important, however, to investigate the car’s life beyond what you see on the Carfax. To use it as a guide, but not necessarily the Gospel.

So what exactly is the Concours d’Elegance?

The Concours d’Elegance is a car show unlike any other, considered to be of the most prestigious events in the automotive world. French for ‘competition of excellence,’ the Concours d’Elegance features the rarest and most beautiful automobiles from all over the world, all competing to be recognized and awarded for their beauty and restoration. These kinds of events date all the way back to the 17th-century, starting with horse-drawn carriages in France, gradually turning into a competition among automobile owners to be judged on the appearance of their respective vehicles. The oldest Concours still in existence today is the Concorso d’Eleganza Villa d’Este in Cernobbio, Italy, first held in September 1929. The first Concours held in North America however, was in 1950 at the Pebble Beach Golf Links in Monterey, California, with just 30 cars exhibited in its first year. Trained judges examine the vehicles thoroughly, which all must be presented in flawless condition…so flawless, that the cars qualified to be featured are often not even driven…except, of course, from their trailer to the show field. People travel from all over to, not only participate in, but to attend these events, from the high brow car collector to the neophyte car fanatic.

With around sixty Concours d’Elegance shows per year in the US, car enthusiasts all over the country will be pleased to find, if they have not already, that their state is home to a classic automobile show of its very own, and if not, there is certainly one close by. The most recent addition to the Concours d’Elegance circuit in the US is the Atlanta Concours, which held its first show last fall at the Chateau Elan Winery and Resort, and is gearing up for their second show this coming September 30-October 1st. It is not uncommon for those who want to, and are able to, attend more than one of these events a year. Between the weekly Cars & Coffee events to spectacular shows such as the Concours d’Elegance, some may even find themselves traveling many weekends out of the year, and that’s just how they like it.

Whatever stage you are in in terms of automobile-enthusiasm, the Concours d’Elegance promises to entertain with “an exciting, unique, high-end classic automobile exposition that dazzles your senses and surpasses your expectations.”.

Bentley Motorcars is a brand associated with timeless luxury and everlasting elegance, so it should come as no surprise that the Queen of England, Queen Elizabeth II, prefers to be chariot-ed around in none other than a Bentley. Founded in 1919 by W.O. Bentley, this British manufacturer committed from the start to produce the absolute best–hand-built and crafted with the finest materials and brightest minds. Such a standard of craftsmanship would suggest that it qualifies as suitable for one of the most royal bums in the world to nest in when traveling. We agree…and so does the Queen. The Bentley State Limousine was created on the occasion of her Golden Jubilee in 2002, and is an official state car used primarily for official engagements, surrounded, of course, by her Royal Protection Squad. The Limousine is also used by the Queen to go to and from church when at Balmoral Castle and Sandringham House.

The State Limousines twin-turbocharged 6.75L V8 engine produces 400 horsepower and 616 lb-ft of torque, with a maximum speed of 130 miles per hour. The vehicle is longer than the Bentley Arnage, equipped with vast coach doors opening to almost a 90-degree angle, and opaque panels optional for more privacy, or removed for visibility of the passengers. The body work and glass is bullet-resistant and the cabin can be sealed in case of any sort of gas attack for the protection and safety of the passengers as well. Like all British State cars, the limousine has a mount for a crest and pennant, which either feature the British Standard or visiting States; and when Her Majesty is on board, her personal mascot of Saint George replaces the typical Bentley Flying B. The bodywork was built by Bentley’s Mulliner coachbuilding division; and British textile manufacturer, Hield Brothers, produced the lambswool sateen cloth used for the upholstery of the rear seats.

Needless to say, if there was any brand capable of producing a coach of such magnificence fit for royalty, Bentley Motorcars shoots straight to the top of the list.